Business, international

What a bump

Article Abstract:

Fund managers see little cause for despair in 1995 despite the current bear market and further expected rises in US interest rates. Stocks are fairly cheap under these conditions, though selectivity is critical. Among the best markets in 1994 were closed ones, such as Taipei and Seoul, and Tokyo, which rose 13.5% in yen terms and 28% in US dollars. Fund managers are concerned about Thailand and Malaysia, but generally expect Asian markets to de-link from US rates. Earnings will boost the region as will foreign investment.

What a bounce

Article Abstract:

Chinese investors illicitly buying B shares in Shenzhen sent that index up from 71.23 on June 11 to an intra-day high of 116.5 on June 18, before Beijing quashed the activity. Exchange authorities were overlooking the illegal accounts, and foreigners cheerfully sold their shares of what many consider poor-quality companies. The exchange may make loans to listed companies, lower commissions, simplify rules, or permit secondary listings of B shares in Hong Kong, though none of these is likely to perk up the exchange.

How the experts see it: diverging views

Article Abstract:

A panel of Hong Kong fund managers finds little agreement in predicting Asia's top markets and companies, and its most dangerous aspects, over the final nine months of 1996. Some predict a long-term global shift in favor of labor over capital, heralding lower equity and bond returns. Others expect a volatile market for Asia, favoring medium-to-large but not blue chip companies, advocating Thailand and China shares for the bullish and New Xealand bonds for bears. Japanese interest rates are thought likely to rise.